12th Nov 2009 07:46
12 November 2009
DEBENHAMS plc - ACQUISITION
Debenhams plc, the UK department stores group, announces that it has entered into an agreement to acquire 100% of the shares of A/S Th. Wessell & Vett, Magasin du Nord ("Magasin") from Magillum A/S. The consideration of DKK 101 million (GBP 12.3 million)* will be satisfied in cash, subject to adjustment in respect of normalised working capital. Completion will take place once the various conditions in the agreement have been satisfied.
Magasin is the leading department store chain in Denmark, with some 20 million customers annually and an annual turnover of DKK 1,885 million (GBP 228.7 million)* in the financial year to 28 February 2009. All six stores have been acquired: the iconic store on Kongens Nytorv in Copenhagen city centre, three other stores in the Copenhagen area (Fields, Lyngby and Rødovre), and stores in Århus and Odense.
Rob Templeman, Chief Executive of Debenhams, said:
"We are pleased to add Magasin to the Debenhams group and believe that the close fit between the two businesses will be mutually beneficial.
"Magasin is one of the best recognised brands in Denmark with a loyal customer base and some great products.
"The success of our international business demonstrates that there is demand for our own bought and Designer brands outside our home market which we believe will complement Magasin's existing brands and deliver both outstanding value and choice to the Danish consumer.
"As part of the Debenham's group, Magasin will be able to benefit from the Debenhams infrastructure and economies of scale. As we realise the synergies that will be available to both companies, we anticipate that this acquisition will be highly accretive for Debenhams shareholders"
- Ends -
* Converted at an exchange rate of GBP £1 : DKK 8.24
About Magasin
Magasin was founded in 1868 by Emil Valentin Lemmin Vett and Theodor Wilhem Wessel and is today regarded as the leading department store chain in Scandinavia, known for its heritage, its excellent customer service delivered by dedicated employees and its strong product portfolio. Its 300,000 square feet flagship store in Kongens Nytorv in Copenhagen city centre opened in 1894 more information on www.magasin.dk
Enquiries
Analysts/investors
Rob Templeman Debenhams plc +44 (0) 20 7408 3302
Chris Woodhouse Debenhams plc +44 (0) 20 7408 3302
Media
Jonathon Brill Financial Dynamics +44 (0) 20 7269 7170
Jan Helleskov Magasin du Nord +45 42 13 56 47
Notes to Editors
Debenhams is a leading department stores group with a strong presence in key product categories including womenswear, menswear, childrenswear, health and beauty, accessories, lingerie and home. Debenhams is the second largest department store chain in the UK.
Debenhams has a total of 145 department stores in the UK and the Republic of Ireland and 12 Desire by Debenhams stores, which is a small store concept featuring a mix of womenswear, health and beauty, accessories, lingerie and childrenswear. Debenhams has 52 international franchise stores in 17 countries and an online store, www.debenhams.com, through which much of the Debenhams range is available.
Designers at Debenhams include Ted Baker, Jeff Banks, Jasper Conran, Erickson Beamon, Pip Hackett, Betty Jackson, Ben de Lisi, Julien Macdonald, Melissa Odabash, Jane Packer, Pearce Fionda, Janet Reger, John Rocha and Matthew Williamson.
Related Shares:
Debenhams